Mumbai: Shares of Shriram Transport Finance Co Ltd lost as much as 6.52%, falling to ₹1, 011, its lowest since May 2017, amid heavy volumes after reports said Piramal Enterprises had exited the non-banking financial company.
So far, 22.6 million shares changed hands on stock exchanges on Monday. The share sale represents a 10% stake in the company. The shares were sold by Piramal Enterprises, reported Bloomberg.
Shriram Transport was the worst performer on BSE100 and NSE Nifty Next 50 indexes.
Piramal owns 20% in Shriram Capital and 10% each in Shriram Transport Finance and Shriram City Union. Shriram Capital is an unlisted holding company. Shriram Transport specialises in financing second-hand trucks and Shriram City Union is into consumer lending. Piramal first invested in the Shriram Group in 2013.
Piramal has been working on exiting its investment in the Shriram Group since a few months now. In April, The Economic Times had reported that the proposed exit from the three Shriram companies -- Shriram Capital, Shriram Transport Finance and Shriram City Union Finance -- could fetch Piramal around ₹9,000 crore.
Piramal's plans to exit Shriram follow the Shriram Group's failed attempt to merge with IDFC Bank Ltd. In July 2018, IDFC Bank and Shriram Group proposed a merger between unlisted Shriram Capital with IDFC Bank “to create a financial power house" worth $10 billion, but the merger failed to materialise.
Bloomberg and Capitaline contributed to the story.